Unnat Jyoti by Affordable LEDs for All Conserve Electricity, Conserve Energy

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1 Unnat Jyoti by Affordable LEDs for All (UJALA) Ministry of Power Unnat Jyoti by Affordable LEDs for All Conserve Electricity, Conserve Energy Key Features of UJALA Unnat Jyoti by Affordable LEDs for All (UJALA) scheme was launched on May 1, 2015 to promote efficient use of energy at residential level and enhance consumer awareness on using efficient equipment to reduce electricity bills and help preserve the environment. The scheme promotes the use of LED bulbs as a substitute to incandescent bulbs, tube lights and CFL bulbs. LED bulbs under UJALA are distributed at subsidized rates through special counters only set up at designated places in different cities across the country. I was not aware of the monetary benefits associated with the LED bulb till the awareness camp. After using the LED bulb for two months, I have saved 30% on my electricity bill. - Ram Prakash Mishra, Kalika GP, Balasore, Odisha The primary energy demand in India has grown from about 450 million tonnes of oil equivalent in 2000 to about 770 million tonnes in This is estimated to increase to about 1500 (as per the Integrated Energy Policy Report) million tonnes in As per data released by the Central Electricity Authority, in , the electricity consumption growth rate in India was close to 8.5 percent. Apart from depleting natural resources, the increasing energy demand has greatly added to the increasing pollution, which in turn has necessitated proper energy planning and optimum use of resources to achieve energy security. As part of Intended Nationally Determined Contributions (INDC), a key commitment following the Conference of Parties 21, India has to reduce carbon emissions by percent. The country has recognized energy efficiency as a key mitigation strategy. Accordingly, the Ministry of Power launched the UJALA Yojana in May 2015 to incentivise people to use LED bulbs in place of incandescent or CFL bulbs. The aim of this brief is to present the current implementation status of the UJALA scheme and the potential energy advantage with the use of LED bulbs.

2 2 The Need for UJALA Yojana A Brief Background Domestic consumers account for almost 24 percent of the total electricity demand in India. As per a study conducted by the Ministry of Environment and Forest in 2011, lighting consumption constituted about 30 percent of overall residential energy consumption. The main lighting options in Indian households comprised of Incandescent Light (ICLs) bulbs, Tube- lights (Fluorescent lamps) and CFLs. The Electric Lamp and Component Manufacturers Association of India (ELCOMA) estimated that in 2012, more than 75.8 crore ICLs and 40.8 crore CFLs were sold in India. A decade earlier, in 2002, the count of CFLs was only about 2 crore. However, with latest technical advancements, the Light Emitting Diode (LED) bulbs have started gaining prominence in the Indian market. The replacement of these 78.5 crore ICLs with LED bulbs, which use 85 percent less electricity for delivering the same output, could result in reduction of 50 billion KWh of electricity. A cross comparative between LED, CFL and ICL is presented below: Lamp Equivalent Light Emitting Diode (LED) Compact Fluorescent (CFL) Incandescent Light (ICL) Life Expectancy 50,000 hours 8,000 hours 1,200 hours Power used 7 Watts Watts 60 Watts Electricity used in 50,000 hours 263 Kwh 700 Kwh 3000 Kwh Energy Efficiency 85% 50% 0% Annual Cost Saving INR 162 INR 85.5 NIL CO 2 Emissions X 2X 10X Cost per bulb INR 400 INR 100 INR 10 While LEDs would help reduce electricity bill and pollution in long run, the key barrier to using efficient lighting in the household sector is its high initial cost and lack of consumer awareness regarding benefits of LED. In light of the above situation, the Ministry of Power launched the UJALA scheme, earlier announced as the Domestic Efficient Lighting Program (DELP), in May 2015 to reduce high initial costs of LED bulbs and promote the use of the same in households in place of ICLs, Tube- lights and CFLs. The consumers availing bulbs under UJALA can save nearly INR 336 every year on their electricity bills per LED bulb.

3 3 UJALA A Way to Light Under the scheme, the Government s target is to replace all 77 crore inefficient bulbs in the country with LED bulbs by 2019, which would result in an annual reduction of 20,000 MW load and Green House Gas reduction of 80 million tonnes every year. The Energy Efficiency Services Limited (EESL), a joint venture of four state- run power companies viz. NTPC, PFC, REC, and Power Grid Corporation under the Ministry of Power, implements the scheme. State Governments are voluntarily adopting the UJALA scheme and the scheme is active in 26 States and 6 Union Territories, as on The 3 states yet to adopt the scheme are Arunachal Pradesh, Tripura and Manipur. The details of UJALA LED bulbs are stated below. Eligibility Any household having a metered electricity connection from the respective Electricity DISCOM is a beneficiary. In case of an upfront payment, the consumer needs to present only Government authorized ID proof (AADHAR card, Voter ID or Passport) whereas for EMI payment, a copy of latest electricity bill is additionally required. Price UJALA LED bulbs are 9 W and can be purchased at a price between INR 75 INR 95 per bulb with slight variation from state to state due to difference in applicable taxes, distribution costs, etc. The consumer can purchase the LED bulb either by paying the entire amount upfront or through monthly/bi-monthly instalments in the electricity bill. Example: In Gujarat, one can pay an upfront amount of INR 70 per bulb or they can choose an EMI option, where consumers will pay INR 75 in total and approximately INR 20 will be added to their bi-monthly electricity bill for 4 bill cycles. Distribution UJALA LED bulbs are distributed through DISCOM offices, Electricity bill cash counters, designated EESL kiosks, and weekly haat markets, the location details of which are available on the UJALA web portal ( A consumer is allowed to purchase a maximum of 10 bulbs under UJALA. Complaint EESL provides a free of cost replacement of UJALA LED bulbs for a period of 3 years in case of a technical defect. Customer complaints are being handled at Distribution kiosks, Customer Care Service Centre and on social media/web platform of UJALA. The total failure rate of UJALA bulbs recorded till August 2016 was only 0.3%, highest being in Delhi (0.97%). Given the very low defect rate, EESL has decided to replace all bulbs as and when the complaints are received.

4 4 Current Status of Implementation As of , more than crore LED bulbs were distributed across the country leading to 18.7 million tonnes reduction of Carbon Dioxide and INR 9,271 crore cost savings per year. The state- wise data, in descending order, of bulbs distributed and the amount of energy saved is annexed. Gujarat became the first state in India to distribute more than 2 crore LED bulbs in only 96 days. The progress of this scheme is continuously being monitored in a transparent manner through a national dashboard on UJALA web portal. It should also be noted that in 6 states Telangana, Assam, West Bengal, Tamil Nadu, Punjab and Sikkim the scheme is still in the process of implementation and the LED bulbs are distributed only through certain institutions rather than distribution kiosks. In Meghalaya, the North Eastern Electric Power Corporation Limited (NEEPCO) has also been distributing the LED bulbs. State Telangana Assam West Bengal Tamil Nadu Punjab Sikkim Institution Indian Railways, DISCOM AHECL (Assam Hydrocarbon & Energy Company Limited), APDCL (Assam Power Distribution Company Limited) Indian Railways, Damodar Valley Corporation Indian Railways Indian Railways Sikkim The UJALA scheme has played a significant role in creating awareness about energy efficient lighting. In , the total number of LED bulbs that were distributed was mere 30 lakhs. The number of LED bulbs distributed in crossed 15 crore, where 9 crore LED bulbs were distributed under UJALA and the remaining by the industry. For , the Government of India is confident of distributing an additional 20 crore LED bulbs. Sustained efforts under UJALA, coupled with industry support, will help the government achieve its objective of replacing 77 crore inefficient bulbs by March Creating Awareness about UJALA Scheme in Kalika GP, Balasore the Swaniti Experience In Kalika GP, the Swaniti team has worked towards strengthening the delivery of UJALA to ensure energy saving at the domestic and community level. While 69 percent households in Kalika had electricity connection, most of them used only CFLs and ICLs. On further inquiry, the team realized that Kalika residents had very little or no knowledge about the scheme but seemed eager to purchase the LED bulbs when informed about the same. Accordingly, the team worked with PRI members and the North Eastern Electricity Supply Company of Odisha Limited (NESCO) office in Hatigarh to spread information about the scheme in each ward and also reached out to the local UJALA distributor for organizing a one-day camp in the GP. The camp was successfully held where individuals and several other institutions such as schools and Hatigarh CHC came out in large numbers to purchase UJALA LED bulbs.

5 5 Annexure I State wise status of implementation of UJALA Yojana State LED Bulbs Energy saved Cost saving per Avoided Peak CO 2 Reduction distributed per year (MWh) year (crore) demand (MW) per year (Ton) Gujarat 27,263,176 3,540,587 1, ,867,875 Maharashtra 19,978,385 2,594,533 1, ,015,727 Andhra Pradesh 19,024,988 2,470, ,001,282 Karnataka 13,389,323 1,738, ,408,453 Rajasthan 11,823,048 1,535, ,243,693 Uttar Pradesh 11,145,357 1,447, ,172,405 Madhya Pradesh 8,750,316 1,136, ,466 Kerala 7,750,299 1,006, ,272 Bihar 7,528, , ,906 Jharkhand 7,515, , ,620 Delhi 7,466, , ,463 Haryana 7,227, , ,308 Odisha 7,223, , ,883 Himachal Pradesh 6,749, , ,002 Chhattisgarh 5,636, , ,907 Uttarakhand 3,378, , ,411 J&K 3,294, , ,544 Goa 717,425 93, ,468 Puducherry 609,251 79, ,088 Telangana 560,485 72, ,959 Assam 439,000 57, ,179 Andaman Nicobar 400,000 51, ,077 West Bengal 340,853 44, ,855 Lakshadweep 100,000 12, ,519 Daman & Diu 95,010 12, ,994 D&NH 81,177 10, ,539 Tamil Nadu 61,018 7, ,419 Nagaland 58,238 7, ,126 Punjab 57,679 7, ,067 Meghalaya 48,444 6, ,096 Mizoram 5, Sikkim 1,

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